Updated August 12, 2026. Program terms change quickly and funds run out. Always confirm current details with MSHDA or the program administrator before making plans. This guide is educational information, not financial advice. Top Agent Realty is a real estate brokerage, not a lender.
If you are buying a home in Metro Detroit in 2026, there are two down payment assistance programs actively taking applications right now: the statewide MSHDA MI 10K DPA Loan (up to $10,000, interest free, no monthly payments) and the Oakland County Homebuyer Assistance Program ($5,000 grant for first time buyers purchasing in Oakland County). A third program you may have read about, MSHDA’s First Generation DPA ($25,000), is closed. All funds were exhausted and applications are no longer accepted. Here is exactly how the two live programs work, who qualifies, and what the numbers are for Oakland, Macomb, and Wayne counties.
MSHDA MI 10K DPA Loan: up to $10,000, statewide
The MI 10K Down Payment Assistance Loan is Michigan’s main DPA program. It provides up to $10,000 toward your down payment, closing costs, and prepaid expenses anywhere in the state, including every Metro Detroit community.
- Amount: up to $10,000
- Structure: an interest free loan with no monthly payments. Repayment is deferred until you pay off the first mortgage, sell, refinance, or stop living in the home as your primary residence.
- Pairing requirement: it must be combined with a MSHDA MI Home Loan first mortgage through a MSHDA approved lender.
- Education: a homebuyer education certificate of completion is required for all homebuyers on the loan.
- Max financing is not required, so you can still bring some of your own money and use the DPA to close the gap.
The MI Home Loan you pair it with: 2026 limits for Metro Detroit
Because the MI 10K must ride on a MSHDA MI Home Loan, the MI Home Loan rules decide whether you qualify. For loans reserved after June 1, 2026:
- Who: first time buyers statewide (anyone who has not owned a home in the previous three years) and repeat buyers in state designated targeted areas.
- Sales price limit: $566,355 statewide. That cap covers the large majority of Metro Detroit listings, including most homes in Troy, Rochester Hills, and Novi.
- Credit score: 640 minimum.
- Income limits: vary by county, household size, and whether the community is a targeted area.
| County | Area | Income limit, 1 to 2 persons | Income limit, 3 or more | Sales price limit |
|---|---|---|---|---|
| Oakland | Most communities | $104,800 | $120,520 | $566,355 |
| Oakland | Targeted: Pontiac, Southfield, Royal Oak Twp. | $125,760 | $146,720 | $566,355 |
| Macomb | Most communities | $104,800 | $120,520 | $566,355 |
| Macomb | Targeted: Mt. Clemens, Harrison Twp. | $125,760 | $146,720 | $566,355 |
| Wayne | Most communities | $104,800 | $120,520 | $566,355 |
| Wayne | Targeted: Highland Park, Inkster, Lincoln Park, River Rouge, Taylor, Wayne | $125,760 | $146,720 | $566,355 |
Two useful details in that table. First, in targeted communities like Pontiac, Southfield, Mt. Clemens, and Taylor, the income limits are about 20 percent higher and you do not have to be a first time buyer. Second, the same $566,355 price cap applies everywhere, so the program is not just for entry level homes.
Oakland County Homebuyer Assistance Program: $5,000 grant
The Oakland County Treasurer’s Office, in partnership with Independent Bank, offers a $5,000 grant, not a loan, to eligible first time buyers purchasing in Oakland County. It launched in September 2024 and had awarded more than $270,000 by January 2026. It runs first come, first served until funds are exhausted.
- Amount: $5,000 per household, usable for down payment and closing costs.
- First time buyer: you and any co borrower must not have owned residential property in the past three years.
- Location: the home must be in Oakland County and be your principal year round residence.
- Income: household income at or below 120 percent of Oakland County area median income, listed by the county as $123,240 for 2025.
- Skin in the game: at least $1,000 of your own funds toward the purchase.
- Counseling: an approved pre purchase counseling program must be completed.
- Financing: the mortgage must be provided by Independent Bank. The county states the grant can be combined with other homebuyer assistance programs; whether it can stack with a MSHDA loan depends on your loan officer, so ask directly.
MSHDA First Generation DPA ($25,000): closed
You may still see articles promoting MSHDA’s First Generation Down Payment Assistance Program, a pilot that offered up to $25,000 to buyers whose parents never owned a home. As of 2026, MSHDA states the program is closed, all funds have been exhausted, applications are no longer accepted, and there is no waitlist. The state allocated $8 million and expected it to help just over 320 families. If you were counting on this program, the MI 10K DPA above is the current statewide option, and it cannot be combined with First Generation assistance in any case.
What this looks like on a real purchase
On a $250,000 home in Warren with an FHA first mortgage, the minimum down payment is 3.5 percent, which is $8,750. The MI 10K DPA can cover that entire down payment plus a portion of closing costs, which is why many MSHDA buyers bring only their earnest money deposit and inspection costs to the transaction. On a $400,000 home in Troy, the 10K covers a meaningful share of a 3 to 5 percent down payment. The price cap of $566,355 means nearly every home our team sells qualifies on price; eligibility usually comes down to the income limits and the 640 credit score.
Down payment assistance FAQ
Do I have to be a first time buyer to use MSHDA down payment assistance?
Statewide, yes: you qualify as a first time buyer if you have not owned a home in the previous three years. In targeted areas, including Pontiac, Southfield, Mt. Clemens, Highland Park, Inkster, Lincoln Park, River Rouge, Taylor, and the city of Wayne, repeat buyers can also use the program.
Does the $10,000 have to be repaid?
Eventually, yes. It is an interest free loan with no monthly payments. You repay the balance when you sell, refinance, pay off the first mortgage, or move out of the home. There is no interest and no payment in the meantime.
Can I use MSHDA assistance on any house?
The home must be your primary residence, priced at or below $566,355, and financed with a MSHDA MI Home Loan through an approved lender. Within those rules it works across Metro Detroit, from Warren and Sterling Heights to Troy and Novi.
Is the $25,000 First Generation program still available?
No. MSHDA closed the First Generation DPA after all funds were exhausted. Applications are not being accepted and there is no waitlist. The MI 10K DPA Loan remains available statewide.
Who do I talk to first, an agent or a lender?
Both, early. A MSHDA approved lender confirms your income, credit, and program eligibility, and your agent makes sure the homes you tour fit the program’s price cap and your real budget. Our team works with MSHDA buyers regularly and can point you to experienced MSHDA loan officers, then structure your offer around the assistance timeline.